Bitcoin is holding above $90K, so why is ‘greed’ sentiment slipping?

Key takeaways:

Crypto market sentiment hit a two-month high with the Crypto Fear & Greed Index returning to “Greed” territory on April 23.
Despite Bitcoin’s price hold, the sentiment score is gradually declining, and analysts are expressing doubt over the rally’s sustainability.
The crypto market remains Bitcoin-heavy, with its dominance above 64%, strong ETF inflows and a low altcoin season score.

Bitcoin’s several-day surge above $90,000 pushed crypto market sentiment to its highest point in more than two months on April 23, but it’s gradually tapering off again as analysts air concerns about the sustainability of Bitcoin’s rally.

On April 23, the Crypto Fear & Greed Index clocked a score of 72 out of 100, putting it in the “Greed” zone as Bitcoin (BTC) returned above the $90,000 level. However, as of April 25, the score has fallen to 60 despite the relatively stable price.

Crypto sentiment at two-month high

The last time the index hit this score was on Feb. 4, around the same time US President Donald Trump introduced tariffs and Bitcoin fell below $100,000. Bitcoin has since reclaimed the $90,000 price level for the first time since March 6.

Cryptocurrencies, Markets — *Bitcoin is trading at $93,130 at the time of publication. Source:* *CoinMarketCap*

However, despite Bitcoin trading between $91,800 and $94,304 over the past two days, sentiment within the “Greed” territory has been gradually cooling off, with the index falling to April 24 and 60 on April 25.

The slight pullback follows warnings from several crypto analysts who remain cautious about the Bitcoin rally, including 10x Research’s head of research, Markus Thielen, who isn’t yet convinced of a rally.

“Given that our stablecoin minting indicator has yet to return to high-activity levels, we remain cautious about the sustainability of the current Bitcoin rally,” Thielen said on April 23.

Meanwhile, Bitfinex analysts said on April 24 that while Bitcoin’s relative strength against US equities “appears real,” it is yet to be confirmed as structural.

However, others are more bullish. MN Trading Capital founder Michaël van de Poppe said on April 24 that “buyers are likely going to step in, and then we’ll be continuing our path toward a new [all-time high].”

CoinMarketCap’s altcoin season index indicates that the market is still heavily favoring Bitcoin over altcoins, with the altcoin season score sitting at a lowly 17 out of 100. It comes as Bitcoin Dominance is sitting at 64.39%, according to TradingView data.

Bitcoin sentiment has gained momentum since it touched the mid-$80,000 price range. On April 17, crypto analytics firm Santiment pointed out that the tone of Bitcoin-related social media posts has flipped to bullish.

Meanwhile, crypto analyst Trader T pointed out in an April 25 X post that US-based spot Bitcoin ETFs have, so far to April 24, seen their third-best week of inflows since launching in January 2024. Over the past four trading days, the spot Bitcoin ETFs have seen $2.6 billion in net inflows.

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